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Marketing Management

The eight states of demand and their impact on the marketing mix

ESLSCA-41C, Winter13071

Group 4:

- Ahmed Salem EL Gandour

- Robert Raouf Helmy Tawadrous

- Samer Mohamed

- Sherif Ezzat

- Waheed Ghobrael

Table of Contents

1- Assignment description …………………….…………………...………………….1 2- Negative demand (Robert)………..………….………………..…………………….2 3- Nonexistent demand (Robert)…..……………...…….……..……………………..3 4- Latent demand (Ahmed)…………………….….…………..………………………..4 5- Full demand (Waheed)…………………………...………..………………………….5 6- Overfull demand (Waheed)……………………………..……………………………6 7- Irregular demand (Sherif)………………………...…………………………………7 8- Declining demand (Sherif)……...……………………………………………………8 9- Unwholesome demand (Samer)………………..…….…………………………….9 10- References ……………………………….…..….…………………………………...10

[1] Assignment Description

The objective of the assignment is to present and analyze cases for companies or brands that experience different states of demand and how they deal (or dealt) with such a demand state from a marketing mix perspective.

[2] Negative Demand (Robert)

2.1 Definition
Situation where consumers avoid a product or firm with negative image or connotations, such as those associated with unfair labor policies or the practices that harm the environment. In some cases, consumers are willing to pay a little more in order to switch their allegiance from one product or firm to another.

2.2 Examples
Classic examples of negative demand include going to the dentist, going to the doctor, bus travel, air travel, train travel and Vaccination. A lower-priced product that a consumer has tried but dislikes also fells into this category, as does the negative attitude toward meat products by vegetarians, whether it be for personal or religious values.

People are afraid to go to the dentist because of the potential pain they experience. The price one pays for not going to the dentist is continued toothache and/or rotting teeth. Similarly, people are afraid to go to the doctor for fear of finding out that they have a particular decease (e.g., cancer). The price they pay is that they will become seriously ill and perhaps even die.

In the past, non-smokers disliked traveling by bus because they would have to breathe second-hand smoke created by the smokers on board for an extended period of time. The cramped space and slow speed of bus travel also were negative factors. Non-smoking and express bus services are designed to overcome at least some of the negative factors of bus travel. The price one pays for not traveling by bus is that of being required to pay a higher price to travel by train or plane.

For those who are afraid to fly (fear of crashing), the price that is paid is being forced to use one of the slower modes of ground transportation (e.g., bus, train). High speed trains, at least to some extent, can overcome some of the speed disadvantage.

Products that consumers tried but dislike may have to be appropriately redesigned to get consumers to try the products again. However, it may be impossible to persuade a vegetarian to try a meat product, particularly if the belief if strongly held or is based on a value. In the latter case, it would be best for the marketer to seek other markets.

Other examples are the marketing of any idea or person that people don't like and willing to pay to avoid them. such as marketing ideas against a religion such as barber service in Sikh area. Sure..."Don't DO that!!"

2.3 Marketing Strategy
Marketers must analyze why the market dislikes the product, and whether product redesign, lower prices, or more positive promotion can change consumer attitudes.

Be Careful, Offensive advertising, false advertisement, low quality product, product misrepresentation, and company reputation can all cause negative demand, which is the determination of consumers not to buy a product. The marketer will need to focus...
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